HSBC 'cutting ties' with US clients

21 July 2011

HSBC is looking to cut ties with rich US clients who bank offshore as the country attempts to clampdown on those who evade paying tax.

The Wall Street Journal reports that the lender is aiming to appease federal authorities that are looking at the role played by the banking sector with regard to such practices.

It comes as prosecutors step up their investigation to find out just who may have been getting away with paying less than they should have.

A person familiar with the matter told the newspaper that the number of clients being watched is in the hundreds, whose accounts total as much as $100 million.

Meanwhile, another insider told the newspaper that customers in the US require around $5 million in assets to qualify for an HSBC private-client account.

A spokeswoman for HSBC - which has 7,500 offices around the world - stated the institution will "no longer offer wealth-management services to US resident private clients from locations outside the US", adding American clients "will be better served" making use of private banking teams in the country.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development